If you haven’t considered investment trusts for your clients, I urge you to do so. Of course, they’re not invincible – there are some badly managed trusts out there – but they do some things better than other collective funds such as open-ended investment companies and unit trusts. For a start, income smoothing. Also, the ability to hold illiquid stocks while always ensuring investors can trade their shares.
UK dividends are firmly in recovery mode. There may be hiccups in the future, triggered by a downturn in company profits as a result of a faltering economy or, I hate to say this, another lockdown.
But for the time being wealth-creating financial advisers should rejoice and raise a glass to the return of the UK dividend.
Jeff Prestridge is personal finance editor of the Mail on Sunday
